Office Space Over Retail Heart of Midtown/Downtown

LOF T So1

2409 L STREET, STE 200 SACRAMENTO, CA 95816

916.573.3300 TURTONCOM.COM

© 2020 The information contained in the Offering memorandum is confidential and is not to be used for any other purpose or made available to other persons without the express written consent of Turton Commercial Real Estate (“TCRE”), Ken Turton or the owner. The material contained herein is based upon information supplied by owner in coordination with information provided by TCRE from sources it deems reasonably reliable. Summaries of documents are not intended to be comprehensive or all-inclusive but rather a general outline of the provisions contained herein and subject to more diligent investigation on the part of the prospective purchaser. No warranty, expressed or implied, is made by owner, TCRE or any other respec-tive affiliates, as to the accuracy or completeness of the information contained herein or any other written or aral communication provided to a prospective purchaser in the course of its evaluation of the Property. No legal liability is assumed or to be applied in connection with the information or such other communication. Without limiting the general nature of the foregoing, the information shall not be deemed a representation of the state of affairs of the Property or constitute an indication that there has been no change in the business affairs, specific finances or specific condition of the Property since the date of preparation of the information. Prospective purchaser shall make their own projections and conclusions without reliance upon the materials contained herein and conduct their own independent due diligence, inspection and review of the Property, including but not limited to engineering and environmental inspec-tions, to determine the condition of the Property and the existence of any potential hazardous material located at the site.

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AARON MARCHANDVICE PRESIDENT - LIC. 01711650916.573.3305A ARONMARCHAND@TURTONCOM.COM

Shepard Fairey @obeygiant Raoul & Davide Perre

@hownosm

PATRICK STELMACHDIRECTOR - LIC. 01964999916.573.3314PATRICKSTELMACH@TURTONCOM.

SCOTT KINGSTONVICE PRESIDENT - LIC. 01485640916.573.3309SCOT TKINGSTON@TURTONCOM.COM

o1 lofts

o1 Lofts Midtown represents one of the rarest

creative office lease opportunities within urban

Sacramento. Light-filled loft work space with

open floor plan, floor to ceiling windows wrapping

around on three sides of the building, and your

own private balcony overlooking lush tree canopy.

Attractive, cool and fully functional in its “as-

is” condition, the building also enjoys 14 luxury

residences upstairs and over 20,000 square feet

of retail on the ground floor, including Starbucks,

Pieology, Mikuni Sushi, and P.F. Chang’s.

For firms that brand themselves as creative,

open, raw, streamlined, authentic and currently

relevant, you must see this building. For

S e c t i o n O n e : T he P r op e r t y

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businesses seeking to recruit the best talent in

their industries and an environment that tells your

creative story rooted in Sacramento, you must see

this space.

The tall ceilings, steel and concrete

architectural features, and large window lines

make o1 Lofts Midtown an inspiring canvas for the

visionary entrepreneur to create their home.

o1 Lofts Midtown is an essential connection

between 16th Street, Downtown and Midtown

to link a seamless, vibrant lifestyle experience

anchored in Sacramento’s most walkable mixed-

use neighborhood. o1 Lofts is centered in a

pedestrian-friendly, walkable neighborhood

of Sacramento. The building has incredible

visibility to both 16th Street and K Street, and is

surrounded by surface and structured parking.

The property features a modern design that

reflects the increasingly contemporary character

of Sacramento mixed-use buildings in Downtown

and Midtown Sacramento with a neutral material

palette, expansive windows,abundant natural light

and high ceilings.

It is an exciting time to be a creative tenant in

Downtown Sacramento. But opportunities for turn-

key creative office space in the urban core are

scarce. Don’t miss this opportunity to be part of

one of Midtown’s most iconic mixed-use projects.

01 LOFTS IS A RARE OPPORTUNITY TO LOCATE YOUR OFFICE IN THE HEART OF THE GRID

o1 lofts

THE PROPERTY

C E N T R A L L Y L O C A T E D O N 1 6 T H S T R E E T

30,542 3± 6,823CARS PER DAY SIDES OF WINDOWSSF MOVE-IN READY OFFICE

100+NEARBY RESTAURANTS

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Section One: The Property

± 6,823 RSF available immediately

Modern industrial-chic design aesthetic

Attractive exposed ceilings and HVAC

High identity corner location

Exclusive patio balcony overlooking Midtown

Rare operable windows

PROPERTY DETAILS

o1 lofts

Section Two: The Location

Midtown Sacramento is the perfect fusion of multi-

generational locally owned business and organic

youth infused goods and services; a healthy dose

of carefully selected national and regional retailers

and an eclectic mix of high-end demographic

occupations are embedded in a landscape of unique

older buildings and mature trees. Business owners,

residents and investors have flocked to the center of

Sacramento’s art, music, and cultural scene to cash

in on the burgeoning and fruitful submarket. Many

people consider Midtown to be the most centralized

area in the City of Sacramento, with easy access to

Downtown, Old Sacramento, West Sacramento and

East Sacramento. Large infill housing and mixed-use

development projects are scattered throughout the

grid, indicating regional growth and an increased

emphasis on inner-city living.

Midtown has emerged as one of the submarket’s

hottest micro-markets. O1 Lofts straddles the border

between Midtown and Downtown which has an

excellent daytime population and provides numerous

eateries and professional amenities within easy

walking distance. O1 Lofts is also located only a few

blocks from the Capital City Freeway. This allows

for quick and easy access to both Interstate 80 and

Highway 50.

The downtown, East Sacramento and Campus Commons

submarkets are only a short drive away via K Street or J

Street - a popular thoroughfare and retail artery.

The 16th Street corridor is home to several high-end

development projects with over 574 apartment units

recently completed, under construction and nearing

completion, and more proposed.

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BUILDING LOCATION75+14 1,000

NEW HOUSING UNITSNEARBY DEVELOPMENTS NEARBY AMENITIES

o1 lofts

Mural: Shaun Burner & Miguel Perez

19th

21st

J

K

Low BrauBlock ButcherComedy SpotAzul | Nekter

Pizzeria UrbanoPeet’s Coffee

Zocalo*58 Degrees

The Press BistroFieldwork BrewingPushkin’s Bakery

HeadhuntersBadlands

FacesThe DepotMango’s

StarbucksNoah’s Bagels

Domino’sTank House BBQ

Streets of LondonSawasdee Thai

Spaghetti Factory

Cafe MarikaSubway

Pachamama Coffee

Tapa The World

Mulvaney’sChipotleDevine

16th

Buckhorn GrillAioli BodegaEspagnolaOld SoulCrepvilleBroderickThe Rind

Make Fish Poke

P.F. ChangsMikuni

StarbucksPieology

Convention CenterHertz

State Capitol

Hot italianMagpie Cafe

Naked LoungeKarma Brew

University of BeerUncle Vito’s

Coconuts Fish CafeFit Eats

Midtown Farmers’Market / 2nd

Saturday / THIS Midtown Concerts

731

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Section Two: The Location

o1LOFTS

o1 LOFTS

Memorial Auditorium

Bevmo | CVSLucca

Goldfield’s

Bento BoxSqueeze BurgerCapitol Garage

The Mixde’ Veres

Public HousePetra GreekStation 16

Cafetria 15L

Golden 1 CenterDoco / The Sawyer

The Hardin

Section Two: The Location

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O1 LOFTS IS IN A SACRAMENTO HOTSPOT. ALL KNOW TO COME TO THIS NEIGHBORHOOD TO START OR END THEIR NIGHT OUT!

o1 lofts

H16 Midtown by SKK

95 units completed on NEC 16th & H Streets

Manor Flats

27 Victorian-style units completed SWC 16th & F

Elanor Apartments by SKK

95 units nearing completion on SEC 16th & E Streets

17 Central by D&S

111 units under construction on NWC 17th & K

The Bernice by SKK

186 units proposed on SWC 16th & H Streets

The Property also benefits from proximity to several nearby development projects which will serve tenants of O1 Lofts for years to come.

NEARBY REDEVELOPMENT PROJECTS

Lavender Courtyard by Mutual Housing 50 units planned for SEC 16th & F Streets

Lotus Equity Partners

Proposing 60 units for NEC 14th & H Streets

Convention CenterTo keep Sacramento competitive in the convention industry, the City of Sacramento

has approved the expansion of the Sacramento Convention Center. Plans for the

project include additional ballrooms, larger exhibit hall and more meeting space.

These plans allow the Convention Center to hold multiple events at the same time.

It is part of a 3-project renovation/modernization that includes the Memorial

Auditorium and the Community Center Theatre.

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Section Two: The LocationCONVENTION CENTER

o1 lofts

H16 MURAL BY JOLENE ROSE RUSSELL

01 LOFTS

600 PARKING STALLS

300 PARKING STALLS

70 PARKING STALLS

46 PARKING STALLS

96 PARKING STALLS

J

I

K

L

15TH

16TH

17TH

18TH

Over 1200 stalls within a 2 block radius

1500 K Street: 300 parking stalls

SEC 16th and J: 70 stalls

1214 17th Street: 600 stalls

NEC 16th and J: 46 stalls

1616 I Street: 96 stalls

PARKING DETAILS

14TH

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Section Two: The Location o1 lofts

Sacramento is the Capitol of California, the fifth

largest economy in the world. While perhaps not

considered as prolific as many of the tourism-based

cities in California such as San Francisco, Los Ange-

les and San Diego, being the hub of California’s gov-

ernmental structure provides an incredible amount of

economic stability throughout the region. In addition,

Sacramento is being increasingly recognized as an

outdoor enthusiast’s dream city with its remarkably

central location to Lake Tahoe, the Sierra’s, Yosemite

and the Coast.

In a recent study completed by WalletHub for Na-

tional Nutrition Month, Sacramento was ranked the

5th healthiest city in the United States among 100

large cities (ranking higher than the likes of Denver,

Colorado Springs, San Francisco, Portland, Austin,

San Antonio and Seattle). Forbes magazine ranked

Sacramento as the 10th healthiest city in the United

SACRAMENTO

CALIFORNIA’S FASTEST-GROWING METROPOLITAN AREA

215+15.3 MILLION 71,335DAYTIME EMPLOYEESANNUAL REGIONAL VISITORS BARS / RESTAURANTS

States versus all cities. A big part of this recognition

stems from the cities’ proximity to the American Riv-

er. Hiking trails and white-water rafting abound along

the American River as well as one of Sacramento’s

crown jewels - the 32-mile American River Bike Trail

which runs entirely along the river from Beal’s State

Park to Discovery Park where it conjoins with the Sac-

ramento River to Old Sacramento on the riverfront

(only a few blocks from the Subject Property).

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THERE’S A REASON EVERYONE IS COMING HERE.

Section Three: Sacramento o1 lofts

Section Three: Sacramento

The word “renaissance” is often overused and

inappropriate to describe economic improvement

in the urban core of cities throughout the United

States. That is not the case in Sacramento. No-

where is the word “renaissance” more applicable

and demonstrable than the City of Sacramento.

In 2012 the economic outlook for Downtown

Sacramento, and the region as a whole, looked

somewhat bleak. The urban core was anchored

by a blighted and inactivated retail mall located

dead center in its retail grid. The mall, former-

ly owned by Westfield, had undergone several

facelifts none of which achieved the economic

results envisioned. The Sacramento Kings, then

owned by the Maloof Family, were threatening to

leave for Seattle and the 30-year-old Sleep Train

Arena located in a nearby suburb was tired and

functionally obsolete.

All of this changed in 2013 when Mayor Kevin

Johnson used his considerable influence with the

NBA and Northern California to complete the sin-

gle most meaningful and transformative econom-

ic transaction in Sacramento since it was named

the Capitol. He brought in a Bay Area ownership

team to purchase the Kings then worked with City

Management to construct a masterful plan to

build a new state-of-the-art 19,000 seat arena

in place of the blighted center at the heart of the

downtown grid.

The impact to Sacramento’s urban core of this

miraculous achievement cannot be overstated

and it has truly formed the foundation for Sacra-

mento’s urban renaissance. Since the formal ap-

proval by City Council of the Cities’ contribution

to construct the Arena (and retain the Sacramento

Kings) the floodgates have figuratively opened to

the urban migration of retailers, businesses and

residents. Vacancy rates in commercial properties

have dropped steadily and rapidly in every urban

district. Property values escalated exponentially.

Blighted buildings on the J, K and L Street corri-

dors were (or are in the process of being) activat-

ed. Over 2,000 new residential units have been

constructed over the last three years.

According to a recent study completed by Bay

Area Economics (BAE) Urban Economics in coor-

dination with the Capitol Area Development Au-

thority (CADA) and the City of Sacramento, only

6% of the population lives in the urban core.

Estimated demand over the next decade is more

than 11,700 units with a possible demand of up

to 20,000 units. Current total pipeline supply is

approximately 4,500 units, and that is being very

generous with submarkets like the Railyards, ac-

counting for up to 2,000 of those units, still in

need of significant infrastructure. In addition,

several high-rise residential projects accounting

for at least another 500 units seem, at this time,

economically infeasible requiring rents of over

$4.00 per sf to warrant concrete, steel and glass

construction inclusive of multi-story concrete

parking structures.

Moreover, according to that same study, demand

for apartment units targeting residents with

median family incomes in excess of 120% over

the mean is almost 2,000 units above projected

supply. This does not account for the economic

construction challenges mentioned above. It goes

without saying the number of professional workers

in the urban core of the State’s Capitol is exten-

sive. 60% of the workforce has some college ed-

ucation and over 1/3 of the workforce have bach-

elor’s degrees or graduate degrees. Over 38% of

the workforce is millennial or Gen Y and over 39%

of the workforce earns over $50,000 annually and

25% earn $75,000 - $150,000+ per year.

These figures also do not account for regional

migration from the Bay Area which appears in-

creasingly imminent as housing prices in the

Sacramento Region are approximately 60% of Bay

Area prices in every category. Suffice to say, the

future of luxury apartments looks very, very bright

in Sacramento’s urban core.

urban renaissance

1 9

demand for luxury living

o1 lofts

#1 Happiest workers in midsized cities

#2 Top 10 most fun, affordable U.S. cities

#4 U.S metro clean tech index

#4 Best cities for nerds

#5 Hot startup cities

#10 Best cities for women in the workforce

#10 Best cities for coffee snobs

#10 Least Stressed-out cities

#14 America’s coolest cities

#16 Best cities for millennials

SACRAMENTO’S CITY RANKINGS

SACRAMENTO REGION ANNUAL SALARY BREAKDOWN:

Over $100,000 - 17%$75,000 - $100,000 - 11%

$60,000 - $75,000 - 10%$40,000 - $60,000 - 18%

$30,000 - $40,000 - 12%Under $30,000 - 32%

LARGEST EMPLOYMENT INDUSTRIES WITHIN 1 MILE RADIUS OF THE PROPERTY:

ANNUAL CONSUMER SPENDING WITHIN A ONE MILE RADIUS OF THE PROPERTY:

Entertainment

Eateries/alc.

Transport

Health & ed.

Household

20 40 60 80*Numbers in millions0

*Based on data from 2019

NUMBER OF EMPLOYEESWITHIN VARYING RADIUS OF THE PROPERTY:

1 MILE 2 3

83,188

137,034

181,382

48% Public Admin. & Sales

17% Science & Tech.

4% Information

5% Healthcare & Social

7% Hospitality & Food

19% Other

SACRAMENTO OFFICE VACANCY:

2016 2017 2018 20199%

10%

11%

12%

13%

14%

WALKSCORE:

97BIKE

SCORE:

98TRANSITSCORE:

55

SACRAMENTO DATA BITESSacramento’s relative affordability versus amenities remains one of its biggest draws. Population growth is expected

to average about 1% (20,000 annually for the region) over the next five years and is expected to outpace the national

average. Household growth continues to far outpace the rate of single-family and apartment deliveries. In recent years,

Bay Area residents have flocked to Sacramento to escape exorbitant housing costs.

2 1

Section Three: Sacramento o1 lofts

FLOOR PLAN

Sect ion Four : F l oo r P lan

UNLIMITED1 ± 6,823RSF AVAILABLEAVAILABLE SPACE POSSIBILITIES

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JOB # DRAWING NO.

BY

SHEET REF.

FILENAMESJM_CENTRAL

2237 DOUGLAS BLVD. , STE 160 // ROSEVILLE, CALIFORNIA 95661 // t 916.786.8178 f 916.786.2175

DEWEY SQUARE SPACE

1020 16TH ST,SUITE 20SACRAMENTO, CA 95814

I-145HELLER PACIFIC

Author

3/32" = 1'-0"1 SECOND FLOOR FURNITURE PLAN - OPTION 1

o1 lofts

K STREET

16TH STREET

POSSIBLE FURNITURE LAYOUT

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2409 L STREET, STE 200 SACRAMENTO, CA 95816

916.573.3300 TURTONCOM.COM

© 2020 The information contained in the Offering memorandum is confidential and is not to be used for any other purpose or made available to other persons without the express written consent of Turton Commercial Real Estate (“TCRE”), Ken Turton or the owner. The material contained herein is based upon information supplied by owner in coordination with information provided by TCRE from sources it deems reasonably reliable. Summaries of documents are not intended to be comprehensive or all-inclusive but rather a general outline of the provisions contained herein and subject to more diligent investigation on the part of the prospective purchaser. No warranty, expressed or implied, is made by owner, TCRE or any other respec-tive affiliates, as to the accuracy or completeness of the information contained herein or any other written or aral communication provided to a prospective purchaser in the course of its evaluation of the Property. No legal liability is assumed or to be applied in connection with the information or such other communication. Without limiting the general nature of the foregoing, the information shall not be deemed a representation of the state of affairs of the Property or constitute an indication that there has been no change in the business affairs, specific finances or specific condition of the Property since the date of preparation of the information. Prospective purchaser shall make their own projections and conclusions without reliance upon the materials contained herein and conduct their own independent due diligence, inspection and review of the Property, including but not limited to engineering and environmental inspec-tions, to determine the condition of the Property and the existence of any potential hazardous material located at the site.

AARON MARCHANDVICE PRESIDENT - LIC. 01711650916.573.3305A ARONMARCHAND@TURTONCOM.COM

PATRICK STELMACHDIRECTOR - LIC. 01964999916.573.3314PATRICKSTELMACH@TURTONCOM.

SCOTT KINGSTONVICE PRESIDENT - LIC. 01485640916.573.3309SCOT TKINGSTON@TURTONCOM.COM

o1 lofts